Crypto exchange EDX Markets, which is backed by Wall Street giants including Citadel Securities and Charles Schwab, tapped Anchorage Digital to provide custody for its clearinghouse business set to launch later this year, the company said Tuesday.
The clearinghouse will help settle trades matched on EDX. Anchorage is the only federally chartered crypto bank in the U.S., making it the “ideal partner," EDX CEO Jamil Nazarali said in a statement.
EDX differs from other crypto exchanges in that it doesn’t hold customers’ assets and instead, users have to go through financial intermediaries to buy and sell crypto assets, which is why the partnership is crucial for the exchange.
“Drawing from the blueprint of traditional finance will be critical to unlocking the next phase of institutional crypto,” said Diogo Monica, co-founder and president of Anchorage Digital. “Anchorage Digital has proven that separating custody and exchange functions for institutions isn’t just possible, it’s essential.”
EDX Markets started operations earlier this year with backing from investors such as Fidelity, Schwab, Paradigm, Sequoia Capital and Citadel. The exchange currently offers four tokens – bitcoin (BTC), ethereum (ETH), litecoin (LITE), and Bitcoin Cash (BCH) – and plans to add more once there is more clarity around regulation in the U.S.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.